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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Bkn Intl (BR) | LSE:BKN | London | Ordinary Share | DE0005290704 | BR SHS NPV |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 25.00 | 0.00 | 00:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMBKN RNS Number : 9429S BKN International AG 28 May 2009 28 May 2009 BKN International AG ("BKN" or the "Company") Interim Results for the six months to 31 March 2009 BKN, a global animation company engaged in the distribution and marketing of animated children's television programmes and related consumer products, that has been listed on the Deutsche Boerse of the Frankfurt Stock Exchange since March 2000 and quoted on the AIM market of the London Stock Exchange since December 2003, today reports its Interim Results for the six months ended 31 March 2009. Financial Highlights +-------------------+------------+-------------+------------+ | | 1st Half | 1st Half | | | | 2009 | 2008 | | | | | | | +-------------------+------------+-------------+------------+ | Total Gross | EUR 6.1 m | EUR 8.7 m | -30% | | Income | | | | +-------------------+------------+-------------+------------+ | Total Expenses | EUR 4.6 m | EUR 5.1 m | -10% | +-------------------+------------+-------------+------------+ | EBIT | EUR 1.5 m | EUR 3.7 m | -59% | +-------------------+------------+-------------+------------+ | Net income | EUR 0.5 m | EUR 2.4 m | -79% | +-------------------+------------+-------------+------------+ | EPS | EUR 0.026 | EUR 0.125 | -79% | | | | | | +-------------------+------------+-------------+------------+ | EBITDA | EUR 3.7 m | EUR 6.1 m | -40% | +-------------------+------------+-------------+------------+ Financial Detail * Total Gross Income decreased 30% to EUR6.1 million (2008: EUR8.7 million). * Total expenses amounted to EUR4.6 million (2008: EUR5.1 million). * Profit before interest and tax decreased 59% to EUR1.5 million (2008: EUR3.7 million). * Net income decreased 79% to EUR0.5 million (2008: EUR2.4 million). * Earnings per share decreased 79% to EUR0.026 per share (2008: EUR0.125 per share). * EBITDA decreased 40% to EUR3.7 million (2008: EUR6.1 million). * The Group invested EUR4.8 million in Film Rights in the period or 50% less (2008: EUR9.6 million). * Film Assets on the balance sheet rise by 4% or EUR2.5 million to EUR70.9 million since 30 September 2008. * Shareholders' equity remains unchanged from 30 September 2008 at EUR46.0 million. Financial Explanation The markets in which BKN operates have become increasingly competitive. Across BKN's global customer base broadcasters have been forced to reduce their budgets as advertisement revenues diminish. Whilst recognising that revenues for the period have fallen 30% from the H1 2008's record levels, BKN has managed to maintain profitability and has been able to preserved liquidity through a 50% reduction in investment in new programming. The difficult trading conditions are reflected in our amortisation charge. BKN's amortisation policy is designed to ensure that properties are not carried at inflated values and that the book values reflect current market conditions. The Company's cost base was already considered to be lean and few savings could be made, expenses being reduced by 10%. The drop in turnover has therefore resulted an exaggerated reduction EBIT which fell by 59%. EBITDA, which excludes amortisation of the back catalogue, fell broadly in line with revenues at 40% lower than in 2008. Despite the economic backdrop Management is optimistic that the Company will remain profitable in the second half of the year. This interim period is typically 30-35% of annual sales and we expect profits for the full 2009 fiscal year to broadly match last year. BKN continues to develop exciting properties within the confines of a much tougher economic climate. Joshua Blake: The Agency The Company announced today the production of a new animated television series entitled Joshua Blake: The Agency. The Executive Board believes that this property will have significant and material impact to its sales and earnings over the next few years. Status of Litigation The update on the sole matter facing the Company is that the Judge in the District Court of Cologne has unfortunately ruled against the Company and issued a preliminary judgment against the Company. We have received a legal opinion from German counsel that, while there are no guarantees, our case has legal merits and we plan to appeal to the full extent of our rights to the higher court(s) in Germany. The process may take several years to resolve completely and provision for the full amount, including legal costs was made in our fiscal 2008 accounts. Financing Status The Company is considering various financing options to reduce our interest costs and to raise additional liquidity. We are considering a combination of conventional loan facilities and issuance of convertible bonds. We have pledged EUR22.5 million of our film assets as security on loans and have approximately EUR48 million in additional film assets that are unpledged. Our Spanish subsidiary, specifically, is doing particularly well with a number of projects in acquisition and production for 2010 and 2011. The group has secured new financing from banks in Spain to fund the Spanish operations, which includes the significant portion of our production studio. The Company has guaranteed these facilities to the Spanish banks. General Information * The subscribed capital is 20,130,290 and 448,227 shares are held in treasury as 31 March 2009. The Company acquired those shares at an average of EUR1.89. * As of 31 March 2009, a total of 1,522,269 stock options have been granted to the management board at an average of EUR3.41 per share. However, the supervisory board decided on 7 May 2009 to cancel 513,310 previously granted options at a strike price of EUR3.00 per share and to grant Messrs Bohbot and Mowat 513,310 new options at EUR1 per share. On 22 May 2009, the supervisory board decided to cancel 113,310 previously granted options at a strike price of EUR2.85 per share and to grant Messrs Bohbot and Mowat 113,310 new options at EUR1 per share. * As of 31 March 2009, a total of 295,455 warrants are outstanding at an average of EUR3.99 per share. * The Company only operates one office based in Cologne. The Company has interests in operating subsidiaries in Spain, the U.S. and the U.K. * The management board has been in place since 1 November 2003 when Mr. Mowat joined Mr. Bohbot who had been on the board since 1 February 2001. * The supervisory board has also been in place for more than six years with Mr. Kugler joining 14 March 2002 and Messrs. Paff and Benetz since 17 January 2003. * The management team is also very experienced and steady and well prepared to manage the Company in these challenging times. Film Catalogue * Since 2000, the Company has commissioned, acquired and/or produced a quality animated library consisting of 92 different titles and 2,098 episodes which are sold internationally and generate recurring revenues. * According to industry data and our own research, we believe this is the 6th worldwide animated catalogue. * In the past, we have licensed our shows in all major markets including 95 countries and dubbed in many languages as per the following short list: - USA - Fox Kids and Disney -Canada - Teletoon and YTV and SRC - Germany - Super RTL and RTL2 and KIKA -United Kingdom - BBC and GMTV - France - M6 and France 3 - Spain - TVE and Telecinco -Italy - Mediaset and RAI - Mexico - TV Azteca and Televisa - Brasil - Record TV and Globo - Australia - TEN and FOXTEL - South Africa - SABC, M-Net - Russia - CTC - Middle East - MBC Internet and New Media The market continues to grow for streaming and downloading and is expected to make meaningful contributions in the years ahead. BKN is poised to benefit in that it is an owner of intellectual properties and therefore owns such rights globally. Currency Impact The Group benefits from a natural hedge against currency fluctuations as some of its costs and revenues are denominated in Sterling and U.S. Dollars. The Group continues to look to minimize its foreign currency exposure, and as the proportion of Euro-denominated costs increase, we are endeavouring to sign most of our sales contracts in Euros. While Latin America and Asia continue to favour U.S. Dollars, we have been successful recently in signing Euro sales and are making this a priority. Outlook Allen Bohbot, Group CEO states 'We have been able to maintain profitability in these challenging markets and in a period that is typically 30-35% of annual sales. Our business model as an owner of intellectual properties is right but there can be no guarantee that the financial or economic slowdown in various parts of the world do not continue to worsen and negatively impact our second half 2009 and full year 2009 results. We do believe that the Joshua Blake: The Agency major project will yield significant and material financial results.' Wayne Mowat, Group CFO, adds 'Our costs are controlled and we are implementing cost savings constantly. Our film rights are properly valued on the balance sheet and we have only pledged EUR22.5 million of our EUR70.9 million film assets or less than 33%. We are seeking new liquidity to finance our projects and business and are making progress in this area. In Germany, we are discussing various options with our lead lender, Commerzbank, and other financial institutions.' 28 May 2009 The Management Board BKN International AG Consolidated Balance Sheet (in thousands of EUR) +-----------------------------+---------------+----------+-------+----------------+---------+ | | As at | | | As at | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | 31st Mar | | | 30th Sept | | | | 2009 | | | 2008 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | Assets | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | A. Fixed and Intangible | | | | | | | assets | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 1. Intangible Assets | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | i) Programme assets and | 56,606 | | | 45,353 | | | other | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | ii) Work in Progress | 14,343 | | | 22,969 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 2. Fixed Assets | 334 | | | 341 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | 71,283 | | | 68,663 | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | B. Other Long term assets | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 1. Other Assets | 181 | | | 199 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 2. Deferred taxes | 2,086 | | | 2,086 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | 2,267 | | | 2,285 | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | C. Current assets | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 1. Stock | 9 | | | 11 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 2. Accounts receivable, | 5,110 | | | 4,658 | | | trade | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 3. Other current assets | 101 | | | 258 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 4. Cash and Cash | 61 | | | 3,541 | | | equivalents | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | 5,281 | | | 8,468 | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | 78,831 | | | 79,416 | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | Liabilities | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | A. Shareholders equity | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 1. Common Stock | 19,811 | | | 19,811 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 2. Additional paid in | 13,037 | | | 13,037 | | | capital | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 3. Other comprehensive | (619) | | | (235) | | | income | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 4. Retained earnings | 13,668 | | | 13,345 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | 45,897 | | | 45,958 | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | B. Long term liabilities | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 1. Bank loans | 24,915 | | | 25,750 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 2. Deferred tax liability | 424 | | | 424 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 3. Deferred long term | 1,938 | | | 0 | | | liabilities | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | 27,277 | | | 26,174 | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | C. Short term liabilities | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 1. Bonds | 60 | | | 60 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 2. Loans and Finance | 2,006 | | | 2,250 | | | liabilities | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 3. Accrued expenses | 2,423 | | | 3,460 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 4. Tax liabilities | 671 | | | 676 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | 5. Accounts payable, trade | 497 | | | 838 | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | 5,657 | | | 7,284 | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | | | | | +-----------------------------+---------------+----------+-------+----------------+---------+ | | | 78,831 | | | 79,416 | +-----------------------------+---------------+----------+-------+----------------+---------+ Consolidated Statements of Operations (in thousands of EUR except share data and number of employees) +-------------------------------------+------------+----------------+----------------+ | | Six Months to | +-------------------------------------+-----------------------------+ | | 31 Mar | 31 Mar 2008 | | | 2009 | | +-------------------------------------+------------+---------------------------------+ | | | | +-------------------------------------+------------+---------------------------------+ | Revenues | | | +-------------------------------------+------------+---------------------------------+ | Television | 2,229 | 4,072 | +-------------------------------------+------------+---------------------------------+ | Consumer Brands | 3,402 | 4,124 | +-------------------------------------+------------+---------------------------------+ | Total sales | 5,631 | 8,196 | +-------------------------------------+------------+---------------------------------+ | Other Income | 444 | 532 | +-------------------------------------+------------+---------------------------------+ | Total Gross Income | 6,075 | 8,728 | +-------------------------------------+------------+---------------------------------+ | | +------------------------------------------------------------------------------------+ | Expenses | | | +-------------------------------------+------------+---------------------------------+ | Depreciation amortisation and | 2,176 | 2,463 | | Goodwill | | | +-------------------------------------+------------+---------------------------------+ | Direct operating costs and | 42 | 22 | | other expenses | | | +-------------------------------------+------------+---------------------------------+ | Salaries and employee benefits | 1,245 | 1,505 | +-------------------------------------+------------+---------------------------------+ | Other Operating Expenses | 1,124 | 1,088 | +-------------------------------------+------------+---------------------------------+ | Total expenses | 4,587 | 5,078 | +-------------------------------------+------------+---------------------------------+ | | | | +-------------------------------------+------------+---------------------------------+ | Earnings Before Interest and Tax | 1,488 | 3,650 | +-------------------------------------+------------+---------------------------------+ | Interest cost | 959 | 792 | +-------------------------------------+------------+---------------------------------+ | | | | +-------------------------------------+------------+---------------------------------+ | Income before provision for income | 529 | 2,858 | | tax | | | +-------------------------------------+------------+---------------------------------+ | Provision for tax | 23 | 436 | +-------------------------------------+------------+---------------------------------+ | Net income | 506 | 2,422 | +-------------------------------------+------------+---------------------------------+ | | | | +-------------------------------------+------------+---------------------------------+ | EBITDA | 3,664 | 6,113 | +-------------------------------------+------------+---------------------------------+ | | | | +-------------------------------------+------------+---------------------------------+ | Earnings per share (Euro cent per | 0.026 | 0.125 | | share) | | | +-------------------------------------+------------+---------------------------------+ | | | | +-------------------------------------+------------+---------------------------------+ | Basic number of shares | 20,130,290 | 19,400,170 | +-------------------------------------+------------+---------------------------------+ | | | | +-------------------------------------+------------+---------------------------------+ | Number of employees including | | | +-------------------------------------+------------+---------------------------------+ | Directors at the end of the period | 33 | 35 | | (not including freelancers in our | | | | production studios) | | | +-------------------------------------+------------+----------------+----------------+ Consolidated Statements of Cash Flows (in thousands of EUR) +-----------------------------------------+-------------+--+------------+ | | Six Months to | +-----------------------------------------+-----------------------------+ | |31 Mar 2009 | | 31 Mar | | | | | 2008 | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Cash flow from Operations | | | | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Net Income | 506 | | 2,422 | +-----------------------------------------+-------------+--+------------+ | Depreciation and Amortization | 2,176 | | 2,463 | +-----------------------------------------+-------------+--+------------+ | Deferred Taxes | 0 | | 112 | +-----------------------------------------+-------------+--+------------+ | | 2,682 | | 4,997 | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Changes in Operating assets and | | | | | liabilities | | | | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Accounts receivable | (452) | | (499) | +-----------------------------------------+-------------+--+------------+ | Tax liabilities | (5) | | 26 | +-----------------------------------------+-------------+--+------------+ | Stocks | 2 | | 3 | +-----------------------------------------+-------------+--+------------+ | Other short term assets | 157 | | 52 | +-----------------------------------------+-------------+--+------------+ | Other long term assets | 18 | | 0 | +-----------------------------------------+-------------+--+------------+ | Accounts payable, trade | (341) | | 120 | +-----------------------------------------+-------------+--+------------+ | Accruals | (1,037) | | 124 | +-----------------------------------------+-------------+--+------------+ | Other | 255 | | (207) | +-----------------------------------------+-------------+--+------------+ | Net cash generated by operating | 1,279 | | 4,616 | | activities | | | | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Cash flow from investing activities | | | | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Intangible Assets/Programming rights | (4,804) | | (9,570) | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Property, equipment and leasehold | 9 | | (321) | | improvement | | | | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Net cash used in investing activities | (4,795) | | (9,891) | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Cash flow from financing activities | | | | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Bank overdraft and other loans | 219 | | 3,656 | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Purchase of own shares | (183) | | 241 | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Net cash provided by financing | 36 | | 3,897 | | activities | | | | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Net (decrease) / increase in cash and | (3,480) | | (1,378) | | cash equivalents | | | | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Cash and cash equivalents at beginning | 3,541 | | 1,413 | | of period | | | | +-----------------------------------------+-------------+--+------------+ | | | | | +-----------------------------------------+-------------+--+------------+ | Cash and cash equivalents at end of | 61 | | 35 | | period | | | | +-----------------------------------------+-------------+--+------------+ Copies of the interim financial statement have been posted at the Company's website (www.bknkids.com) and at the website of the Deutsche Boerse. Further copies are available from the Company's Registered Office in Germany at Gustav-Heinemann-Ufer 56, 50968 Cologne, and in the United Kingdom at BKN New Media Ltd, 77 Kingsway, London WC2B 6SR. Enquiries: +--------------------------------------------+---------------------------+ | BKN International AG | | +--------------------------------------------+---------------------------+ | Allen Bohbot, Chief Executive Officer | Tel: +49 221 12608214 | +--------------------------------------------+---------------------------+ | allen.bohbot@bknkids.com | | +--------------------------------------------+---------------------------+ | Wayne Mowat, Chief Financial Officer | Tel: +44 20 7269 8687 | +--------------------------------------------+---------------------------+ | wayne.mowat@bknkids.com | | +--------------------------------------------+---------------------------+ | Sascha Ziemann, Finance & Investor | Tel: +49 221 12608211 | | Relations Manager | | +--------------------------------------------+---------------------------+ | sascha.ziemann@bknkids.com | | +--------------------------------------------+---------------------------+ | Laura Tapias, Managing Director | Tel: +34 93 368 18 00 | +--------------------------------------------+---------------------------+ | laura.tapias@bknkids.com | | +--------------------------------------------+---------------------------+ | Nicola Andrews, Managing Director | Tel: +44 20 7269 8677 | +--------------------------------------------+---------------------------+ | nicola.andrews@bknkids.com | | +--------------------------------------------+---------------------------+ | Matthew Graham-Clare, Managing Director | Tel: +44 20 7269 8678 | +--------------------------------------------+---------------------------+ | matthew.graham-clare@bknkids.com | | +--------------------------------------------+---------------------------+ | www.bknkids.com | | +--------------------------------------------+---------------------------+ Nominated Adviser & UK Broker: +--------------------------------------+---------------------------------+ | Hanson Westhouse Limited | | +--------------------------------------+---------------------------------+ | Richard Baty | Tel: +44 20 7601 6100 | +--------------------------------------+---------------------------------+ | richard.baty@hansonwesthouse.com | | +--------------------------------------+---------------------------------+ +--------------------------------------+---------------------------------+ | Designated Sponsor in Germany: | | +--------------------------------------+---------------------------------+ | Close Brothers Seydler | Tel: + 49 69-92054-138 | | Steven Rockenhaeuser | | +--------------------------------------+---------------------------------+ | steven.rockenhaeuser@cbseydler.com | | +--------------------------------------+---------------------------------+ Notes to Editors: About BKN: BKN International AG is a global animation group engaged in the distribution and marketing of animated children's television programmes and the marketing of related consumer products (licensing and merchandising) in all forms. BKN has worked on numerous successful animation projects. The Company is currently listed on the Deutsche Bourse and AIM and it operates all over the world. BKN has successfully negotiated distribution deals in over 90 countries and territories in the children's programming market. The Group's Film Library includes: - Dork Hunters from Outer Spacec- Pocket Penguin Adventuresc - Extreme Dinosaursc-Roswell Conspiraciesc - Kong - The Animated Seriesc - Stone Agec - Legend of the Dragonc - UBOSc - Pocket Dragon Adventuresc- Zorro: Generation Zc This information is provided by RNS The company news service from the London Stock Exchange END IR PUUAAAUPBUBR
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